Intel says the acquisition is part of an effort to expand its expertise in the wearable device category. Rather than branding products under its own name, Intel says it plans to create wearable reference designs, chipsets, and other technology to be used by its customers in the development of wearable gadgets.

At CES 2014, Intel showcased a few wearable reference designs, including a pair of smart earbuds that can urge its wearer to keep exercising along with a smartwatch prototype. Intel expressed interest in the wearable display category as well when it invested in Recon Instruments, creator of the Jet sports-oriented smart eyewear, in September of last year.

Basis products will continue to be sold through the company's current retail channels, and TechCrunch reports that the fitness tracker creator had previously been in talks with Google, Apple, Samsung, and possibly Microsoft before inking the deal with Intel.